Malcolm Roberts leaves the ABC bureau in the press gallery. One Nation wants greater restrictions on the broadcaster but other crossbenchers oppose the plan.
Photograph: Mike Bowers for the Guardian

The ABC chairman has underlined the importance of the ABC’s independence, and declared ABC-bashing will not solve the problems faced by commercial media outlets, as the Turnbull government’s media reform package hangs in the balance.

Justin Milne was in Canberra on Wednesday night as part of the national broadcaster’s annual showcase in Parliament House, and took the opportunity to send politicians a clear message as the horse trading intensified behind the scenes on the government’s media reform package.

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Milne told an audience of politicians Australia had benefitted from a dual media system for 85 years, with public broadcasting existing alongside commercial media.

“This media environment has ensured vibrancy and diversity, for the good of all Australians,” he said.

“And while I am sympathetic to the concerns of the commercial sector as it seeks new business models in a severely disrupted media landscape, criticising the ABC is not the solution to their problems.

“It never has been.”

Milne said the ABC had been criticised by commercial media in Australia since its creation, with the first line of attack against a radio service. “The then media barons opposed the ABC’s entry to radio on the basis it would destroy their commercial stations.”

“It didn’t.”

“The same occurred with the advent of television in the 1950s, and the same again in the 1990s when the ABC was mandated by government to use the internet as a means of extending its trusted, independent and impartial voice to new audiences over new platforms.”

Milne said in the modern environment “of fragmenting audiences, of the clamour about fake news, the erosion of national boundaries and the decline and consolidation of commercial media – the one incontestable fact is that now, more than ever, the nation needs a strong independent and trustworthy public broadcaster”.

The Nick Xenophon Team and the Greens made it clear on Wednesday they would not support changes to the ABC’s charter being sought by One Nation.

One Nation, a trenchant critic of the ABC, on Tuesday night announced its in-principle support for the government’s media package in return for greater restrictions on ABC finances and neutrality.

But over the course of Wednesday, it became clear that One Nation’s wish list, which includes a change to the ABC’s charter requiring the broadcaster to be fair and balanced, did not have the numbers to pass the parliament.

The government can legislate a media reform package with the support of the NXT and the Greens.

Both Xenophon and the Greens made it clear on Wednesday they remained at the negotiating table and were seeking agreement on a wish list including an inquiry into Google and Facebook, and tax breaks for small media outlets to allow them to expand and hire more staff.

Xenophon met the communications minister, Mitch Fifield, on Wednesday to work through his list of demands.

Guardian Australia understands one of the current sticking points is the government’s lowball offer to the NXT and Greens on tax credits that would be made available to small, profitable media companies for employing journalists.

The crossbench groups are holding out for the government to present a more generous proposal on the tax credits.

The Greens have made it clear they are not in a hurry to come to terms with the government.

The Greens leader, Richard Di Natale, said he was confident the Greens party room would support removing the two out of three rule, which prevents media moguls from controlling television, newspapers and radio stations in the same market, if the government would agree to substantial concessions, including boosting Australian content and increasing the viability of the national broadcasters and independent publications.

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An internal row within the Greens scuppered a schools funding deal the party attempted to reach in cooperation with the Turnbull government earlier this year, and has triggered a bout of internal recriminations which played out publicly earlier this week on the ABC’s Four Corners program – with open warfare between the party leadership and the New South Wales Greens senator Lee Rhiannon.

Di Natale told reporters on Wednesday his party would not proceed to deal with the government in the absence of internal unanimity. “Of course we wouldn’t proceed on any other basis.”

Guardian Australia asked Rhiannon on Wednesday whether she supported the current negotiations between her party and the government on media reform. She replied: “No comment.”